What Are Fast-Moving Consumer Goods?
Nowadays it is almost impossible to find someone who doesn’t use FMCG on a daily basis. Fast-moving consumer goods are products which usually have short usage term and relatively low price. They include nearly all major products from food and drinks to cosmetics and pharmaceutical supplies. People use these goods every day without even noticing, therefore, the industry starts facing significant issues; sustainability, fast-changing trends, counterfeited goods, lack of consumer engagement, etc. Lack of consumer engagement is one of the most critical issues because it links to the profit, brand image, brand loyalty, and accurate insights about new and established products. Thus, if your business is facing problems regarding mentioned areas, there is a big chance you are lacking in consumer engagement.
Lack of Consumer Engagement in the FMCG Industry
As mentioned before, consumer engagement relates to the different aspects of the business, and it is actually what matters the most: customers are the ones who give a meaning to your product existence. When consumer engagement rates fall, business risks encountering various challenges. According to Hall and Partners model, up to 2/3 of company’s profit can rely on consumer engagement. Therefore, lack of involvement can lead to profit loss, especially, when it comes to fast-consumed products.
Up to 2/3 of company’s profit can rely on consumer engagement.
Sounds terrifying, that’s why it is better to concentrate on the bright side and find ways to increase your knowledge of the targeted customers. This will not just lead to valuable insights about the business, it can also provide a significant financial gain. But an increase in profit isn’t the only benefit of customer engagement, therefore, we pointed out the key perks.
Advantages of Consumer Engagement:
Builds Brand Image
Strong brand image connects clients with the company and raises awareness. When customers start to identify products or services with the brand, it gives a different perspective to the whole business. A memorable image naturally brings new clients and an increase in profit.
As mentioned above, a higher amount of customer engagement with the brand will increase the overall customer loyalty. Automatically, word of mouth starts working and brings in new users and helps to keep the existing customers. This strategy is crucial for the FMCG industry due to rapid consumption people tend to be more concerned with the product than the brand.
It’s not a secret that every product and service needs valuable feedback to improve and enhance their business. Consumer engagement is one of the best ways to do this because user feedback is more accurate than most analytic tools. Defining strengths and weaknesses will help to improve products, service quality, and the business itself.
How to Increase Consumer Engagement?
However, when it comes to the actual consumer engagement, it takes more effort than you could imagine. According to different statistics, retail companies mostly rely on various analytics or BI (business intelligence) tools. Which is a great way to measure the key changes in trends and client behavior, nevertheless it’s not enough to find specific causes of these changes. And this is where consumer engagement comes in handy, defining a particular issue. For instance, a company releases new flavor chocolate bars, but it doesn’t increase sell rates, obviously, something is not right. To figure out the reasons businesses can use different analytics tools, but after all the most useful tool would be reviews and comments from the buyers.
There are tons of different strategies to increase customer awareness and engagement with the brand. Businesses should humanize their brand, become more familiar with the users and communicate with them as much as possible. Yet, the engagement process is usually tedious and requires a lot of effort, forcing brands to find various ways of measuring data through different sources. It is highly relevant to FMCG because getting valuable insights is nearly impossible when the product is consumed within a few days or weeks. This is where companies should take advantage of new technology, and as the innovative solution provider, LuxTag®, brings consumer engagement naturally, while providing other benefits to businesses on different levels.
LuxTag Solution for the FMCG Industry
LuxTag secures FMCG brands and ensures the authenticity of their products, to enhance the effectiveness of the service LuxTag uses the innovative NEM Blockchain technology. NEM Blockchain allows speed, security, and transparency throughout the whole process. And of course, increases consumer engagement. It’s easy to use — when business adapts our technology it makes the brand stand out and shows they care for the clients. The fact that brands care enough to ensure a more secure and transparent service, shows respect and consideration for their customers.
The second way how LuxTag raises user engagement is through Blockchain, it tracks the movement of the product, and shows the after-purchase trends. Despite the significant advantages of consumer engagement, LuxTag also protects brands from counterfeit and fake goods and highlights ownership and origins. Our team works hand in hand with our clients to understand their needs better and make sure the service we give caters to their needs.
What are your thoughts about consumer engagement? What are your challenges and how do you solve them? Leave comments below and let us know!
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